First rental property help!
I am looking at purchasing my first rental property. After everything is said and done I would be potentially cash flowing $100-$150 per month. I have $40k to put down and this is a condo in the Jacksonville area. Is 100-150 a good cash flow amount for my first property? Or am I living on the edge? Any help would be appreciated. Thank you
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@Sean Thoele The answer is it depends.
Is that the best use of your capital right now, in your life, at your age? Does the expected COC get your excited? Are you tapping into a 6-month emergency fund to buy the condo? Any value add opportunity? Do you have $5k cash set aside for emergencies and maintenance issues once it's rented?
The answers to those questions are important. They steer the "decision tree" and tell you if REI is a smart choice right now. When I started out it took me 6-12 months do research, read, run the numbers, and then buy my first house.
Dropping $40k into a condo and making $150 per month in CF after PITI, capex, maintenance, and vacancy? I wouldn't buy it. Condos usually appreciate slower than SFH, and Florida has seen some price swings lately. I'd walk more properties and search for a better deal.